Licensed Lender or Unlicensed Lender?
Would you go to a doctor who isn’t licensed to practice medicine? Would you hire a lawyer who didn’t have a license to practice law in your state? Then why would you apply for payday loans when the cash advance lender is not licensed in your state? Businesses who are licensed to practice in your state must abide by rules and regulations. If they conduct unlawful business, initiate illegal business practices, or act against better business practices, there are consequences including: losing their license to practice business, fines, law suits, etc. However, those business who are not licensed to practice business in your state can conduct their business in any way they choose. They are unregulated, and can avoid prosecution. Those who are unlicensed typically conduct business out of state or out of the country. It is very difficult to subpoena or prosecute these types of businesses. That is why it is important to only take out cash advances from online payday loan lenders who are licensed.
Borrow from Licensed Online Payday Loan Lenders
Online payday loan lenders who are licensed to lend to you must abide by state regulations. Each state has different regulations pertaining to online payday loan lending. The cash advance lender must only charge fees and interest that have been determined by the state government in which they lend cash in. Regulations include how much APR a payday loan lender can charge, and how much the fee for amounts borrowed can be. Before borrowing from a cash advance lender, be informed of the regulations in your state. Online payday loan lenders who are licensed also follow the Community Financial Services Association of America best practices.
Online payday loan lenderswho follow the CFSA best practices provide full disclosure on their cash advance websites. This means that they make customers aware of fees and interest rates. Licensed cash loan lenders comply with all state laws, regulations, and restrictions. They are truthful with advertisements, encourage customer responsibility, prevent rollovers, and provide customers with the right to rescind. Those online payday loan lenders who are licensed follow the appropriate debt collection practices, do not take criminal action, and support balanced legislation. For these reasons and more it is important that as a customer of cash loans, you borrow from licensed online payday loan lenders.